this is a small independently owned business that was formed in 2008 by two brothers, one of which has worked in the chemical industry for over 15 years, working with some of the finests chemists in the industry. During this time he identified an opportunity for the manufacture of flame retardant chemicals for the textile industry and within 18 months the company has grown dramatically and is going from strength to strength. The company works primarily for the upholstery and window blinds industry producing flame retardant and waterproof coatings to be applied to textiles. The company have a distinct advantage on their competitors by taking their chemicals to sub- micron particle size which exceeds new legislations. Some chemical coatings that have been around for the last thirty years will soon be banned ( june 2010). Taking the chemicals to sub-micron particle size results in improved performance of the coatings. This allows flames to be put out quicker, gives the textiles a better handle, needs less of the compound to achieve better results, and has a cost saving resulting in the product offering becoming a very competitive and superior alternative for their customers. The coatings are all tested, non harmfull and enviromentaly friendly and approved by a number of users throughout europe. Already all of the six major textile manufacturers in the uk are dealing with the company on a regular basis with three of these clients using them as sole suppliers. The export market has also grown dramatically with regular orders from belgium, holland, germany and scandinavia. Trials are being carried at present with a number of other major export manufacturers and once these trials have been approved the next stage is for bulk production. This is an easy product to make and it is also an easy operation to run. The potential market for this type of product is huge and the company have a distinct advantage on their competitors on both performance and price giving them a once in a lifetime opportunity for rapid growth. Competitors will find it difficult to react quick enough to the new legislations being introduced and this leaves the door open for the company to forge ahead and attract new customers. The two brothers have a major concern in cash flow and over trading, plus they are both uncomfortable with the rate of growth of the business. When they set out to form the company they did not expect for it to grow so quickly with such enormous potential. The business now needs both investment and better credit facilities for it to flourish further. They currently factor their debts and ideally they need to ease their factoring restrictions to handle larger bulk production runs which at present they are finding difficult to accommodate. This is a relatively new company that has distinct product performance benefits on its competitors together with a competitive edge. It is a business that has room to grow quickly and has identified its target market. They have a good client base with regular, repeat orders coming in and there are other new potential customers conducting product trials at present. This is a perfect business for an investor or an established company to take over whilst managing the growth and expanding the infrastructure of the company in this expanding sector of the textile market. Equipment: the company has all the necessary equipment needed for the production of chemical flame retardant coatings that you would expect, including; analytical kit, mixing equipment, laboratory equipment plus a fork lift truck and a delivery wagon, which is on hire. A full list of equipment is available to all genuinely interested parties. Customer service: all coatings are thoroughly tested in-house before being sent out to potential clients for their own stringent trials. The company have a number of standard products which can be sold to more than one customer although most clients have slight variations on coating properties and the company are happy to adhere to customers requests. A small sample batch of coatings is then produced for their potential clients to test in their own environment and once this has been approved the next stage is bulk production supplied in drums. Key strengths: the chemical flame retardant coatings all adhere to new legislations that are being introduced in june 2010. They are producing coatings that are taken to sub-micron particle size resulting in improved performance. This helps to put out the flames quicker, it uses less compound meaning the handle of the fabric is softer and there is a cost reduction making the coatings cheaper to buy. There are a small number of competitors both in the uk and europe who have been using the old coatings for the past thirty years. All of these competitors will find it difficult to react to the new legislation and already they are lagging behind in terms of new technology and development. The business is relatively new and has expanded quicker than expected. It is totally re locatable. The company are dealing with all of the major uk textile manufacturers using flame retardant coatings and they have developed their export business in belgium, holland, germany & scandinavia with a number of new manufacturers presently conducting in house trials. Growth and expansion: the company has grown from its first year turnover of circa £650,000 to an on target forecast of £1,600,000 in its second year. With new orders and new clients the owners have intimated that circa £3,000,000 turnover is achievable in year three. The company have just scratched the surface for the export market. With new legislation taking effect all over europe, there is huge potential to approach established textile producing countries such as italy, turkey, spain, portugal and poland to secure new business. The company needs better credit facilities to prosper. They have factoring restrictions which need to be eased and need financial investment to help them grow the company. The owners realise that they are reaching a point where they soon could be overtrading and they are both uncomfortable with this scenario. Another larger company with greater credit facilities or an investor would be able to facilitate the growth and opportunity which this business provides.
